Ambuja Cements slips after Q4 PAT drops 49% YoY

18 Feb 2022 , 09:25 AM

Sales volume (cement + clinker) in Q4 CY21 was 7.2 million tons (up 3% YoY). Cement demand remained subdued, especially in the month of November 2021.

Realisation improved by 4% to Rs 5,135 per ton in Q4 CY21 from Rs 4,926 per ton in Q4 CY20. Improvement in realization was on account of favourable geo mix and product mix, the cement maker said.

During the quarter and year ended 31 December 2021, there was an exceptional charge of Rs 65.69 crore on account of restructuring cost.

EBITDA fell by 26% to Rs 568 crore in Q4 CY2021 from Rs 768 crore in Q4 CY2020.

EBITDA margin was 15.4% in Q4 CY2021 as against 22.1% in Q4 CY2020. Operating EBIT margin was 10.8% in the fourth quarter as compared with 18.5% reported in the same period last year.

Profit before tax in Q4 CY2021 stood at Rs 340 crore, down by 48.3% from Rs 658 crore in Q4 CY2020.

Ambuja Cements reported 16.2% rise in standalone net profit to Rs 2,081 crore on a 23.4% increase in net sales to Rs 13,794 crore in the year ended 31 December 2021 as compared to the year ended 31 December 2020.

Neeraj Akhoury, CEO, Holcim India and managing director & chief executive officer, Ambuja Cements, said Ambuja delivered a strong full year performance with an EBIT growth of 25% for the full year backed by strong performance in volume, product mix and operational efficiencies combined with significant acceleration in volumes under the Master Supply Agreement with ACC.

During the year we delivered our highest ever sales volume supported by stabilization of operations at our new plant in Rajasthan. However, the December 2021 quarter was unfavorably impacted by very steep escalation in fuel prices coupled with subdued demand in multiple regions .

The Board has approved in principle an investment of Rs 3,500 crore for a cement grinding expansion plan of potential 7.0 million tons across our existing grinding units at Sankrail and Farakka and at a greenfield location at Barh, in Bihar. This is supported by a 3.2 million tons brownfield clinker expansion at our existing integrated plant in Bhatapara, Chhattisgarh.

Ambuja Cements is one of the leading cement companies in India. It is part of the Holcim Group, a global leader in building materials and solutions and active in four business segments: cement, aggregates, ready-mix concrete and solutions & products.

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